Buying vs Leasing

When Buying Makes Sense

• Equity and Wealth Building: Monthly mortgage payments build equity over time, potentially increasing your net worth as the property appreciates.
• Stability and Control: Ownership offers long-term stability, the ability to customize, and protection from rent increases.
• Tax Advantages: Homeowners may benefit from mortgage interest and property tax deductions. Consult your tax advisor for specifics.

Considerations Before Buying

• Upfront Costs: Down payment, closing costs, inspections, and moving expenses add up.
• Maintenance Responsibility: Homeowners handle repairs and ongoing upkeep—budgeting for maintenance is essential.
• Market Exposure: Property values can fluctuate; holding period matters if markets soften.

When Leasing Makes Sense

• Flexibility: Ideal if you plan to move in the near term or want to test a neighborhood before committing.
• Lower Upfront Costs: Security deposits and application fees are typically lower than a down payment.
• Minimal Maintenance: Landlords generally handle major repairs, reducing unexpected expenses.

Considerations Before Leasing

• No Equity: Monthly rent doesn’t build ownership or long-term wealth.
• Less Control: Restrictions on customization and potential for rent increases at renewal.
• Availability and Competition: Desirable rentals can be competitive, and lease terms vary.

Cost Comparison: The Big Picture

Compare total monthly costs—not just rent versus mortgage. Consider taxes, insurance, HOA dues, utilities, maintenance, and potential repairs. For buyers, also account for closing costs and the time horizon to break even versus renting.

Lifestyle and Timeline

If you value flexibility and anticipate life changes—like job transitions or relocation—leasing may be preferable. If you’re ready to put down roots and invest in a community for several years, buying could be the stronger long-term play.

Making the Decision

The right choice balances numbers and lifestyle. We can help you run scenarios, evaluate neighborhoods, and decide whether buying or leasing aligns with your goals today—and your plans for tomorrow.